BMO Investments Inc. has received securityholder approval to proceed with the changes initially announced on August 3, to BMO Equity Index Fund, BMO International Index Fund and BMO U.S. Equity Index Fund. The changes take effect at the the close of business on September 17.


“Exchange-traded funds (ETFs) continue to be of interest to investors because they offer a new and innovative way to invest,” says Hugh McKee, co-president, BMO Investments Inc. “However, the requirement to purchase ETFs through a brokerage account has been a roadblock for some time, and with these changes BMO now provides customers greater accessibility.”

These funds will now give investors access to some of the benefits that a pure ETF can provide, such as participation in an investment that tracks a defined, passively managed index. It is also expected that the changes will result in lower transaction costs and improved overall performance of the funds. Furthermore, by reducing the number of portfolio transactions the tax impact for non-registered investors should be reduced.

BMO Equity Index Fund

The investment objectives of BMO Equity Index Fund will change to allow the fund to provide a return that is similar to the return of one or more exchange-traded funds that invest primarily in Canadian equities. The fund will invest all or a portion of its assets in one or more exchange-traded funds, invest directly in the underlying securities held by the exchange-traded funds and/or use derivatives to provide the fund with a return determined by reference to the exchange-traded funds. The investment strategies for this fund will also be revised to reflect the new objectives. In addition, the fund’s name will change to BMO Canadian Equity ETF Fund.

BMO International Index Fund

The investment objectives of BMO International Index Fund will change to allow the fund to provide a return that is similar to the return of one or more exchange-traded funds that invest primarily in international equities. The fund will invest all or a portion of its assets in one or more exchange-traded funds, invest directly in the underlying securities held by the exchange-traded funds and/or use derivatives to provide the fund with a return determined by reference to the exchange-traded funds. The investment strategies for this fund will also be revised to reflect the new objectives. In addition, the portfolio manager of the fund will change from State Street Global Advisors, Ltd. to BMO Asset Management Inc. and the fund’s name will change to BMO International Equity ETF Fund. 

BMO U.S. Equity Index Fund

The investment objectives of BMO U.S. Equity Index Fund will change to allow the fund to provide a return that is similar to the return of one or more exchange-traded funds that invest primarily in U.S. equities. The fund will invest all or a portion of its assets in one or more exchange-traded funds, invest directly in the underlying securities held by the exchange-traded funds and/or use derivatives to provide the fund with a return determined by reference to the exchange-traded funds. The investment strategies for this fund will also be revised to reflect the new objectives. In addition, the portfolio manager of the fund will change from Harris Investment Management, Inc. to BMO Asset Management Inc. and the fund’s name will change to BMO U.S. Equity ETF Fund. 

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